Business Sale: Stock Sale Treated as Asset Sale

As a general rule, most small business sales are conducted via an asset purchase agreement which transfers the assets of the company and leaves the liabilities with the seller unless specifically assumed by the buyer. There are occasions, however, when a business transaction can more effectively be completed using a stock purchase agreement. There are two Internal Revenue Code (IRC) sections that will permit the sale of a business under a stock purchase agreement to be treated or deemed an asset sale. Read More